If some industries exhibit increasing returns to scale in each country, we should not expect to see
A) intraindustry trade between countries.
B) perfect competition in these industries.
C) interindustry trade between countries.
D) Either B or C.
B
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
__________ are most likely to raise the eyebrows of antitrust officials while ______ are not
a. Price discriminators; predatory pricers b. Conglomerate mergers; vertical mergers c. Horizontal mergers; conglomerate mergers d. Low Herfindahl-Hirschman indices; high Herfindahl-Hirschman indices e. Patent sales; patent purchases
The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $5 for 10,000 widgets. At that level of output, the firm's average total costs equal
a. $10 b. $15 c. $100 d. $150
If GDP grows more rapidly than population for a particular country over a period of time, then we can determine that
A. GDP must rise at a slower rate in the future. B. GDP per capita has increased. C. All citizens of this country are better off. D. Real GDP has decreased.